The actual selling expenses incurred in March 2020 by Fallon Company are as follows. ...
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Accounting
The actual selling expenses incurred in March 2020 by Fallon Company are as follows.
Variable Expenses
Fixed Expenses
Sales commissions
$11,272
Sales salaries
$34,900
Advertising
10,552
Depreciation
7,500
Travel
8,685
Insurance
1,600
Delivery
3,534
(a) Prepare a flexible budget performance report for March, assuming that March sales were $173,700. Variable costs and their percentage relationship to sales are sales commissions 6%, advertising 6%, traveling 5%, and delivery 2%. Fixed selling expenses will consist of sales salaries $34,900, Depreciation on delivery equipment $7,500, and insurance on delivery equipment $1,600. (List variable costs before fixed costs.)
(b) Prepare a flexible budget performance report, assuming that March sales were $181,000. (List variable costs before fixed costs.)
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